(Alliance News) - TP ICAP Group PLC on Tuesday reported a fall in statutory profit, and announced a share buyback programme, as it considers a possible minority float of its Parameta Solutions unit.
Shares in the London-based interdealer broker surged 11% to 220.30 pence each on Tuesday morning.
Chief Executive Nicolas Breteau said on market data solutions unit Parameta: "The board believes that Parameta's significant growth prospects, and the intrinsic value of the business, are not appropriately reflected in our share price. We are therefore exploring options for unlocking value for shareholders, whilst retaining ownership of the asset, which include a potential IPO of a minority stake in the business."
The Financial Times over the weekend, citing people with knowledge of the matter, reported that Parameta was registered by TP ICAP last month as a standalone company.
TP ICAP said revenue in 2023 expanded 3.6% to GBP2.19 billion, from GBP2.12 billion in 2022.
Pretax profit, however, fell 15% to GBP96 million from GBP113 million.
On an adjusted basis, pretax profit rose 20% to GBP271 million from GBP226 million. The adjusted figure strips out "significant items" such as amortisation and impairment costs.
CEO Breteau said: "We have met, or exceeded, the majority of our revised 2023 targets. Since our capital markets day in 2020, the group is growing the top line, is more diversified, more profitable, and more cash generative. We are committed to creating sustainable shareholder value by investing for growth in our market-leading businesses, maximising the value of our strategic assets, and delivering strong cash generation and dynamic capital management."
TP ICAP lifted its final dividend by 27% to 10.0p from 7.9p, and upped its total annual dividend by 19% to 14.8p from 12.4p. It also announced the launch of a GBP30 million share buyback programme, after completing one of the same size in January.
Looking ahead, the company said that it is confident with current market expectations for 2024.
"Liquidnet and Parameta Solutions showed an improving growth trajectory in the second half of 2023 - providing good momentum into 2024," CEO Breteau said.
He added: "Against this backdrop, we will stay focused on developing, and growing, strong client franchises; transforming and diversifying the group; and managing our capital dynamically. Tight cost management will continue to be a core focus."
By Tom Budszus, Alliance News slot editor
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TP ICAP (TCAP)